Orissa frames corporate governance manual for PSUs

To revive the loss making public sector utilities of the state, the Orissa government has formulated a Corporate Governace Manual (CGM), said to be the first of its kind in the country.

The initiative came as majority of these units were incurring losses while private companies were posting profits.

Of the 32 PSUs in the state, only eight were found to be making profits while two other were neither making profit nor loss, official sources said. The rest of the 22 were found incurring losses, sources said.

The CGM, released by Chief Minister Naveen Patnaik dwelt on the relationship between the PSUs, administrative departments and department of public enterprises.

“For forming an efficient and effective board for the PSUs, a right balance of domain experts, industry-experienced people and independent directors, protection of stakeholders interests have also been discussed in the manual,” an official said.

As a policy measure, there will be constitution of high level and independent MoU Task Force having a domain specialist to head the force, sector-wise.